Use the Following Information for Questions:
Armada Inc Armada Estimates Bad Debt Expense Based on 2% of Net

Multiple Choice

Use the following information for questions:
Armada Inc.'s books revealed the following data for 2011 after all adjustments were made: $\begin{array}{lr}\text { Cash sales } & \$ 825,000 \\\text { Sales returns (on credit sales) } & 35,000 \\\text { Allowance for doubtful accounts (credit balance) } & 3,800 \\\text { Credit sales } & 575,000 \\\text { Accounts receivable } & 168,000\end{array}$ Armada estimates bad debt expense based on 2% of net credit sales.
-The bad debt expense for 2011 was:

A) $10,800
B) $11,500
C) $14,600
D) $3,360